New to car auctions? Here’s what you need to know

There are so many ways to go about buying or selling a car these days.

You can buy new or used, from a dealership or private seller, from the online classifieds or even from a car auction.

But today we’re going to be exploring the world of car auctions.

If you’re in the market to buy a new car, you may want to keep reading and find out more about why this is probably the car-buying solution for you.

What is a car auction?

New and used cars can be sold through the process of a car auction, although it’s definitely a more popular platform for used car sales. A car auction is a method of selling cars through an auction or bidding system. Cars sold at an auction are, as we’ve mentioned, usually used cars that come “as is” and are bought at the buyer’s own risk.

As hesitant as that fact might make you feel, there are some advantages of auction cars that make them the “best buys” you’re looking for. You need to know what to look out for and how to go about bidding at a car auction before you just rock up and leave disappointed with a lot less cash to your name.

What are the advantages?

Let’s start by looking at the advantages of why car auctions are a thing people are interested in.

Unbeatable prices (for real): The only time you’ll be able to find a better price for a vehicle is if someone in your family practically gives you a car. But in terms of buying your own car, auction cars are the most affordable. It’s been said that some cars at car auctions can be sold at about 30% below market value, which means you have the potential to save 30% by buying an auction car over one at a car dealership or from a private seller. And if you’re a mechanic or really goods friends with a mechanic, the fact that there may be a few bumps and faults with the vehicle when you buy it, won’t make too much of a difference. In any case, you’ve saved enough money from buying the car at an auction, you may as well spend a little to have it fixed up a little.

A variety of makes and models: Car auctions see the likes of all types of vehicles, brands, models, colours and pretty much every other possible vehicle specification. This not only makes it ideal for people who know exactly what car they want to buy at a fraction of the price, but for car collectors who have been on the hunt for years as well.

What are the disadvantages?

Now, as with anything, there are disadvantages which, for some, trump the amazing price advantage.

You buy with your eyes: Not all car auctions allow for catalogues before the time of the auction, so you generally just arrive with a hope to buy. But even with those auctioneers who do allow a preview before the auction, you can still only buy with your eyes. There is no test drive option available to get a proper feel for how the car runs. All you are allowed to do is switch the car on to listen to the engine, take a look under the bonnet and view any previous log books. It’s not a lot to go on when the purchase of a car is a big deal to most people.

And what you see it what you get: Unfortunately, there are no guarantees with car auctions. There is a high possibility that the cars on auction have passed the second-hand title and are circulating the third and fourth-hand cycle of their lives. There is also a high possibility the auction cars you place a bid on are faulty and require repairs once they’ve been bought.

How a car auction works, paddle and all

Now, when it comes to the actual car auction itself, it’s recommended you attend as a spectator for the first time to get a better understanding of the process. Here is the auction in three phases that you need to consider and understand before you go ahead with the bid:

Before the auction: You need to know how much you can afford to spend on a car so you know how high you can bid at the auction (this generally requires approval from the bank). You also need to inspect the car as early as possible before the auction, with full knowledge of the vehicle and what needs to be repaired (if that’s the case). If you aren’t the brightest spark plug under the hood, bring someone along with you who has mechanical insight and who can advise you. The last step is to get your deposit and necessary documents together and you’re ready to go.

During the auction: The first step is to register as a bidder. Then you need to know when your vehicle is up on auction in the programme and you also need to know when it’s time to stop raising the paddle (refer back to what you can afford).

After the winning bid: The last few steps are rather simple. After you win your auction, fill out the paperwork, pay for the vehicle, get your necessary documents and pay-out slip (very important) and collect the keys of your new car.